Talisman, Statoil to Buy, Operate Texas Oil Shale

Talisman Energy Inc., the Canadian oil and natural gas explorer, and Statoil ASA, Norway’s largest oil and gas company, said they agreed to pay $1.33 billion for oil shale properties in the Eagle Ford formation in South Texas and form a joint venture to develop the fields.

Talisman will initially operate the 97,000 acres (39,254 hectares) of oil shale prospects purchased from Enduring Resources LLC, the company said in a statement. Statoil will also buy for $180 million 50 percent of Talisman’s existing Eagle Ford holdings. For both transactions, Statoil will pay a total of $843 million, according to a statement on its website. Talisman said its net cost for the acquisition will be $485 million.

The companies have an option to buy as much as 22,000 additional acres. Talisman also has stakes in the Marcellus shale in the northeastern U.S. and the Montney shale in British Columbia.

In April, Talisman agreed to sell C$1.9 billion ($1.87 billion) worth of natural-gas fields in Alberta and Ontario to free cash for shale projects. North American gas producers are increasing output from shale formations, where rocks hundreds of feet below the ground are fractured to unlock fuel deposits.

Shale development is driving a surge in U.S. gas output and has started to draw interest in Poland from companies including Exxon Mobil Corp. and Chevron Corp.

Talisman Energy Inc., the Canadian oil and natural gas explorer, and Statoil ASA, Norway s largest oil and gas company, said they agreed to pay $1.33 billion for oil shale properties in the Eagle Ford formation in South Texas and form a joint venture to develop the...